Category: Economy

**Understanding the Implications of the Economics of Oil: Lessons from Donald Trump’s Davos Speeches**

During his speech at the World Economic Forum in Davos, Donald Trump reignited the debate over oil prices by calling on OPEC to act, thereby raising crucial geopolitical questions. Against a backdrop of the war in Ukraine, Trump suggested that lower crude prices could contribute to peace, highlighting the complex links between economics and diplomacy.

While Saudi investment in the United States reflects a desire to deepen economic relations, American dependence on global oil markets remains a thorny issue. The discussion around energy self-sufficiency in the face of oil price fluctuations illustrates the long-term strategic challenges for oil-producing countries.

In sum, Trump’s thoughts speak to a changing world order, where oil is becoming more than just a commodity, it is becoming an instrument of influence on the international stage. As the energy transition looms, how nations navigate this complexity will determine the future of international relations and global economic stability.

### Kolwezi in Peril: Water and Energy under Tension

The city of Kolwezi, in the heart of the Democratic Republic of Congo, is threatened by an energy crisis fueled by a failing electricity supply. The recent intervention of the National Electricity Company (SNEL) revealed that the construction of a dam by a Chinese company is preventing the crucial flow of the Kando River, essential for the operation of local dams. This blockage jeopardizes not only electricity production, but also the economic future of the region, where 70% of households suffer frequent cuts.

Local authorities, such as the Administrator of Mutshatsha, are calling for immediate intervention to restore the flow of water and preserve the balance between industrial development and community well-being. The consequences of this crisis go beyond daily needs: Kolwezi businesses see their productivity threatened and their operating costs rising. The situation requires a constructive dialogue between local, government and private actors to ensure sustainable development that respects natural resources.

In a global context where sustainability is becoming essential, Kolwezi has the opportunity to become a model of cooperation between economic progress and environmental protection, provided that local voices are listened to and taken into account.

### Goma in the Dark: Between Energy Crisis and Growing Insecurity

Since January 22, 2025, Goma, the capital of North Kivu, has been facing a major power outage that is worsening an already critical situation marked by the threat of the M23 armed group. Residents, now plunged into darkness, express their despair in the face of an energy shortage, even as the National Electricity Company (SNEL) struggles to meet growing demands. In this context, the adoption of alternative solutions such as generators and solar panels highlights an urgent, albeit costly, adaptation that many households cannot afford.

The energy crisis is not just a simple blackout; it could lead to an escalation of social tensions, already weakened by the omnipresent insecurity. Could Goma experience protests similar to those observed in other cities in the region? A call for collective action is needed: local authorities, NGOs and the private sector must work together to establish sustainable solutions, ensure the safety of citizens and restore hope for a better future to this resilient city. Goma deserves a response that is much more ambitious than simply restoring electricity.

### SNECA: Transformation Catalyst for the Congolese Insurance Sector

The launch of the SNECA digital platform by the Insurance Regulatory and Control Authority (ARCA) in the Democratic Republic of Congo marks the beginning of a new era for the insurance sector. In just five years, the market has seen its turnover explode, from 70 million to 351 million USD, thanks to dynamic regulation. Digitalization, embodied by SNECA, offers an unprecedented opportunity to combat tax evasion and improve transparency, while drawing inspiration from the successes of other emerging markets such as India.

However, challenges remain, such as uneven digital infrastructure and the need to train staff. For Congo-Brazzaville to position itself as a regional leader in insurance regulation, it is crucial that all stakeholders engage in this digital revolution. SNECA is much more than a technological tool: it is the springboard towards sustainable growth, anchored in transparency and trust, serving the Congolese economy.

**The Diamond Revolution in the DRC: Between Renaissance and Social Challenges**

The Democratic Republic of Congo (DRC) is redefining its place in the global diamond market, with production having climbed by 18% in the third quarter of 2024. This leadership status is not just about numbers, but raises important social, economic and environmental issues. Although 66.87% of diamonds come from artisanal mining, often synonymous with precarious conditions for workers, the industry must move towards stricter and more ethical regulation, like countries like Angola. At the same time, environmental issues should not be neglected, as the growth of the industry must imperatively be done while respecting natural resources. For the DRC to reap the benefits of this opportunity, it is essential to ensure transparent and equitable governance, ensuring that the benefits are passed on to local populations. In this quest, the DRC could not only benefit from a bright light on the international scene, but also, and above all, build a sustainable future for all.

**Davos 2025: Towards an Economic Revolution under the Eye of Trump**

The World Economic Forum in Davos took an unexpected turn on January 23, 2025, with the virtual appearance of Donald Trump, the new American president. With a provocative message, he called on companies to repatriate their activities to the United States, threatening heavy customs duties for those who chose to stay abroad. This protectionist approach calls into question the foundations of free trade and encourages reflection on the future of global trade relations.

Beyond its impact on the American market, this strategy could exacerbate tensions with other nations and deal a blow to international cooperation, particularly in terms of the energy transition. While other leaders, such as Javier Milei in Argentina, adopt similar discourses, a wave of economic nationalism seems to be looming on the horizon.

Leaders in Davos, including those from the IMF and the ECB, are calling for a return to collaboration, underscoring the urgency of a collective response to this emerging dynamic. Trump could redefine not only the American economic landscape, but also the global trade architecture. It is time for reflection: today’s choices will shape tomorrow’s economy.

### Kinshasa: Cement Price Hike and Its Economic Impact

The recent increase in the price of cement in Kinshasa, from 28-29,000 Congolese francs to 34,000, raises concerns about market stability and the affordability of construction materials. This price spike is largely attributed to the reintroduction of the 16% VAT, which increases costs for consumers. The consequences are severe for the construction sector, which is essential to the economic development of the DRC, notably disrupting vital infrastructure projects.

To address this situation, it is crucial that Congolese policymakers work with sector stakeholders to limit price increases, strengthen local procurement, and consider tax incentives. Recognizing that this cement crisis is symptomatic of deeper economic problems could guide us towards a long-term vision, making it possible to improve the living conditions of the Congolese people and revive the national economy.

**Moldova’s Energy Crisis: A Challenge That Reveals Resilience and Geopolitical Tensions**

Since the beginning of 2023, Moldova has been struggling with a deep energy crisis, exacerbated by the halt in Russian gas supplies. This turning point, which has plunged millions of Moldovans into winter conditions without heating or electricity, highlights challenges that go beyond the humanitarian framework. The situation highlights the interconnections between energy, politics and social resilience in a country already weakened by geopolitical tensions.

Faced with this crisis, Moldovans are demonstrating impressive solidarity, setting up citizen initiatives to share resources and solutions in isolated villages. At the same time, the country is facing an urgent need to diversify its energy sources, with only 20% of its consumption coming from renewable energies.

This period of crisis could turn into a lever for innovation, consolidating a sustainable ecosystem and allowing Moldova to reexamine its identity on the international stage. As geopolitical issues become more complex, Moldova’s response to this crisis could redefine its future, making resilience and solidarity essential assets.

**Summary: Goma in the Dark: The Devastating Effects of a Power Outage**

On January 22, 2025, Goma is plunged into darkness due to a power outage on the high-voltage line between Bukavu and the city. This outage highlights not only the inadequacies of a fragile energy network, but also the daily challenges of a population already tested by insecurity and economic crisis. Testimonies from citizens, such as Mugaruka Alex and Mangaza Sophie, reveal the devastating impact on small businesses, jeopardizing the savings of many residents. With less than 30% of the Democratic Republic of Congo having access to electricity, Goma’s situation calls for an urgent reassessment of energy infrastructure. This outage is not just an inconvenience; it exposes inequalities and underscores the need for concerted action to build a sustainable and resilient energy future. SNEL, while acknowledging its shortcomings, must seize this opportunity to engage in constructive dialogue with the community and plan sustainable solutions.

**Kinshasa: Pioneering a New Economic Chapter**

The recent Economic Forum of the Democratic Republic of Congo in Madrid marks a turning point for Kinshasa, often underestimated despite its immense potential. Under the leadership of provincial minister Jésus-Noël Sheke, the city is presenting itself as a hub for foreign investment, particularly in the infrastructure, tourism and gastronomy sectors. With a population of over 13 million and an unmatched cultural wealth, Kinshasa offers a unique opportunity to revitalize its economy.

Lessons from other African nations, such as Ghana and Senegal, highlight the importance of an enabling investment framework. Yet, beyond the numbers, the DRC must integrate values ​​of sustainability and inclusiveness to truly transform its economic landscape. Kinshasa’s future rests on its leaders’ ability to translate these promises into concrete achievements. Investors now have the opportunity to embark on a rich and promising economic adventure.